{"id":206533,"date":"2024-07-11T17:32:12","date_gmt":"2024-07-11T21:32:12","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=206533"},"modified":"2024-07-11T17:32:13","modified_gmt":"2024-07-11T21:32:13","slug":"jamaica-announces-income-tax-credit-for-persons-who-acquire-and-install-solar-photovoltaic-system","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/jamaica-announces-income-tax-credit-for-persons-who-acquire-and-install-solar-photovoltaic-system\/","title":{"rendered":"Jamaica announces income tax credit for persons who acquire, and install solar photovoltaic system"},"content":{"rendered":"
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The House of Representatives, on Tuesday (July 9), passed the Income Tax (Amendment) Act, 2024, which seeks to implement a regime to provide income tax credit to individuals who acquire and instal a solar photovoltaic system at their primary place of residence.<\/p>

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Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, had informed of the initiative during his 2023\/24 Budget presentation.<\/p>\n\n\n\n

\u201cThis Bill seeks to achieve this by setting out the appropriate legal framework that would allow individuals to benefit from this income tax credit.<\/p>

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This measure forms part of a much broader goal of reducing our dependence on fossil fuels and substantially increase the share of renewable energy in our local energy mix,\u201d Dr. Clarke told the House.<\/p>

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The Minister said Jamaica has set a target to achieve a 50 per cent use of renewable energy in the electricity generation sector by 2030, and that the utilisation of appropriately targeted fiscal measures is critical to achieving this result.<\/p>\n\n\n\n

\u201cYou will also recall that in my budget presentation earlier this year, as a part of the 2024\/25 Budget, I indicated that the Government will also be reducing the corporate income tax rate for independent power producers producing 75 per cent or more of their energy from renewable sources, from 33 1\/3 per cent to 25 per cent,\u201d Dr. Clarke said.<\/p>

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\u201cThe objective of this rate reduction is to promote growth within the renewable energy sector but providing a more favourable tax environment and providing more of an incentive for larger-scale investment in renewable energy technologies, such as wind and solar,\u201d he added.<\/p>\n\n\n\n

The Minister said that the major components utilised in the installation of a solar photovoltaic system, such as the solar photovoltaic panels, solar inverters and solar batteries, including lithium-ion batteries, are also exempt from the payment of General Consumption Tax (GCT).<\/p>

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\u201cThese fiscal measures are proof of the Government\u2019s commitment to achieve the target of 50 per cent use of renewables by 2030. The Government will continue to explore measures, fiscal and otherwise, to ensure that this target is met. The Bill before us sets out the criteria that will enable individuals who have installed a solar photovoltaic system at their primary residence to benefit from the income tax credit,\u201d Dr. Clarke said.<\/p>

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In addition, the Bill makes provisions for, among other things, an income tax credit at the rate of 30 per cent of the acquisition and installation cost of the solar photovoltaic system for the taxpayer primary residence, up to a maximum cost of $4 million.<\/p>\n\n\n\n

\u201cThis means that the maximum credit an individual will be allowed to claim is $1.2 million. This measure shall apply to solar photovoltaic systems acquired and installed on or after January 1, 2023 [that is] for the year of assessment 2023. The value of the income tax credit will be applied to the acquisition installation price of the solar photovoltaic system and will be claimable in the year the system is installed,\u201d he stated.<\/p>\n\n\n\n

\u201cThe income tax credit will be used by the taxpayer to offset their total income tax liability equal to the total value of the credit received. The credit would be non-refundable, i.e, the total value of the credit exceeds the total taxpayer\u2019s liability; the taxpayer would not receive a cash refund. A carry-forward provision is included to allow the individual to apply the unused portion of the credit to future tax years,\u201d he added.<\/p>\n\n\n\n

Dr. Clarke said the amount of credit applied would be restricted to a maximum of 50 per cent of income tax payable by the taxpayer in the assessed year, with the remaining amount being carried forward and applied to the future tax year.<\/p>\n\n\n\n

In order to claim the credit, the taxpayer will have to provide proof such as invoices and independent verification that the solar photovoltaic system is installed and is generating electricity.<\/p>\n\n\n\n

\u201cThe Bill [also] seeks to amend the income tax prescribed form order 2015, to prescribe new taxpayer return forms to facilitate the tax credit in the relevant forms,\u201d Dr. Clarke said.<\/p>\n

\"\"<\/a><\/div>","protected":false},"excerpt":{"rendered":"

The House of Representatives, on Tuesday (July 9), passed the Income Tax (Amendment) Act, 2024, which seeks to implement a regime to provide income tax credit to individuals who acquire and instal a solar photovoltaic system at their primary place of residence. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, had […]<\/p>\n","protected":false},"author":3,"featured_media":206534,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-206533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nJamaica announces income tax credit for persons who acquire, and install solar photovoltaic system - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/jamaica-announces-income-tax-credit-for-persons-who-acquire-and-install-solar-photovoltaic-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Jamaica announces income tax credit for persons who acquire, and install solar photovoltaic system\" \/>\n<meta property=\"og:description\" content=\"The House of Representatives, on Tuesday (July 9), passed the Income Tax (Amendment) Act, 2024, which seeks to implement a regime to provide income tax credit to individuals who acquire and instal a solar photovoltaic system at their primary place of residence. 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